Attended RHB Invest Market Chart 2010

I would like to sincerely apologize to you all, as I have been away from blogging for more than a week. I've my reasons to do so, so please forgive me okay.

On the past few days, I've attended 2 free stock talks, one of them was RHB Invest Market Chart 2010. The seminar managed to attract more than 100 people attend. As you might already expected, 85% are males, and majority of them are 'uncles' level. So, I didn't bring my camera as well. ;)

In short, I witnessed Lim Chee Seng, head of RHB Research Institute sharing his opinions on global and local market outlook, as well as individual sector, based on fundamental analysis. Without surprise, his opinions are more or less the same as mine, except minor sectors that I'm not totally agreed with his thinking. 

Since it was a half day seminar, there were 2 other sessions related to ETF fund and technical analysis. But I chose to skip it, as my friend who accompanied me, starting to fall asleep. 

This RHB seminar reminded me about RHB Stock Challenge, which I totally forgotten to manage my account. How are you doing so far?

KKB

Sorry folks, BJCORP has managed to gather some investors attention to push it's price shot up more than 9% after my previous post regarding discouragement of investing in this company. Not to worry much about it, as different people have different opinion. If you really agreed that BJCORP has a bright outlook, then you may think it is undervalue for now.

Nevertheless, BJCORP is not the star we want to discuss further today, I would like to share with you about a star which has been greatly shinned for the past 2 weeks. I believe you should already heard about KKB Engineering Bhd. It is a Sarawakian holdings and it's business involved in steel fabrication, civil construction, hot dip galvanizing and manufacture of LPG cylinders, steel pipes and related products. 

KKB has gained more than 45% revenue and close to 250% profit over the previous year. This is extremely shocking result, as 2008-2009 is the worst financial year for most companies. You must be wonder why KKB can do and recover so well in 2009, compare to it's competitors and especially the fall of steel demand. Well, if you've read KKB 2008 Annual Report, you should figure out why.

KKB share price has been shot to new high of RM6.09 after the released on it's outstanding 4Q09 result, with the support from all stock analysts. A 67% gain rally in 2 weeks, perhaps more to come? Invest a stock based on fundamental analysis is just too good to be 'true', isn't it?

Note: The post above is just my personal opinion, I'm not responsible for any of your trading decision.

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BJCORP

Congratulations to all the traders, the market is continued for the OPR fever on Monday! And it is expected to retrace on today without the support of surprise news and taking profit from the traders. From the volume traded, it seems the sellers are just minimum. I'm surprised that PBBANK led the banks to shoot to the month high, just right after my previous post. 

If you read financial news today, you'll noticed an article talked about "Berjaya Corp Deeply Undervalued". It was written by AmResearch. It mentioned that BJCORP will be having higher earning this year, due to the upward revenues from some of the important subsidiaries and businesses, such as Cosway and Mazda. Apart from that, the management will also try to minimize the heavy debts by selling non-core businesses such as retail mall, hotels and company shares. With such improvements, shareholders will benefit from BJCORP's share price. 

I'm impressed with the projects Berjaya Group doing in Vietnam.

What do you think after you read it? Are you thinking the same way too? Do you trust Tan Sri Vincent Tan and BJCORP management? 

Well, BJCORP share price has been adjust more than triple since early of last year. Perhaps many investors are looking good at it, including AmResearch analyst. For me, I won't touch this kind of company. This is not because I don't trust Tan Sri Vincent Tan and his sons, or even it's future business outlook. I do think it is positive as well. I just think that BJCORP has too many business divisions, a total of 20 over businesses under 10+ divisions. They really confused me. It will be very hard for me to keep track which are growing well and which are making a loss. Adding an existing semi-heavy debts issue, I would choose to stay away from it for the time being.

 

On the other hand, if it is really heavily undervalued, the output of this research should be able to boost up the stock price for at least 5-10%, no? If you like one of it's strongest division, you can just invest the subsidiary shares, such as BJTOTO or BJLAND.

Note: Above are just my personal opinion, I'm not responsible for any of your trading decision.

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CIMB vs PBBANK

Wow, just look at the index for this week, it hiked like nobody else! Many blue chips are triggered to a new high with good new,s including good earning for year 2009 and the raise of OPR by BNM. Some blue chips doing really well are Axiata and CIMB.

It seems obvious that CIMB is surpassing Public Bank as a finance leader in Malaysia. Public Bank really need to do something to secure it's position and stimulate it's lagging share price, I don't see much benefits with the raise of OPR for Public Bank, compare to CIMB.

For oversea business, it seems CIMB is growing more rapidly and aggressive, perhaps more to come in the near future. Apart from that, CIMB CEO also has political advantage, being a brother to our Prime Minister. It is not surprise CIMB can jump from retraced price of RM12 to the peak of RM13.70 within 2 weeks.

So, is RM13.70 is still a good buying price for CIMB? I don't know whether it will continue to grow up to where, but definitely not really a good buying point for now. For me, I'll look for another potential finance company with better growth and lower price. I re-absorbed little units of PBBANK at it's low peak earlier, I'm expecting it can give me some surprise after 1Q10. I still trust Tan Sri Teh, after so many years. Public Bank really has to think out of the box for it's business in 2010.

Note: Above are just my personal opinion, I'm not responsible for any of your trading decision.

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Updated on Short-Listed Companies & OPR

Still remember my post on some short-listed companies in the mid of January? I must admit most of them are on board already, due to the higher profit growth from the quarter report, from 5% to 30%. They are just good to generate stable profit for me. 

Among them, the most outshine one is Coastal, which is my favorite. I believe it will continue to grow higher, as the positive factors are surrounding her. On the other hand, if you are unlucky and continue to hold IRCB which I mentioned in my previous post that I don't want to touch at all, please look her price between the date of my post and today. I hope you have cleared it at it's peak.

Today, Bank Negara finally raised the Overnight Policy Rate (OPR) by 25 basis points to 2.25%. Again, they claimed the domestic economy has improved significantly and is now on a path of recovery. Perhaps what they said is true, it's time. For those who bought real estate in 2009, apparently you have made the right decision.

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